6th Nov 2008 07:00
REG-Micro Focus Intl plc Pre-close Trading Update To be released: 06/11/2008
06 November 2008
Embargoed for 7.00am
Pre-Close Trading Update
Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) announces a positive update on trading for the half year to 31 October 2008.
Following a strong trading period in the first half year, Micro Focus expects to report total revenues of approximately US$135.0m (2008: US$108.9m). The Group EBITDA margin, excluding exceptional items and stock based compensation, for the six months to 31 October 2008, is expected to exceed 40%.
At constant currency, Micro Focus expects to report licence fee growth in the region of 14% and maintenance revenue growth of approximately 10% as compared to the same period in H1 FY2008. Consulting revenues, which contribute only 4% of total first half revenues, are expected to be 6% lower than those reported in H1 FY2008. Overall, total organic revenue growth at constant currency is expected to be approximately 11%.
The two recent acquisitions of NetManage Inc. and Liant Software Corporation have been integrated rapidly. Margins at these operations are in line with levels at the rest of the Group for the period since acquisition.
Stephen Kelly, Chief Executive Officer of Micro Focus, commented:
"Micro Focus has demonstrated strong progress across the Group in all major geographies. We have achieved solid growth across both licence and maintenance revenue streams.
"We are pleased with the continued margin progression in our core business. While we continue to monitor the macroeconomic situation, as we enter the second half the trading outlook across the Group remains in line with management's expectations."
Further details will be provided in the interim results statement for the half year to 31 October 2008 to be announced on 9 December 2008.
Enquiries:
Micro Focus Tel: +44 (0)1635 32646
Stephen Kelly, Chief Executive
Nick Bray, Chief Financial Officer
Tim Brill, IR Director
Financial Dynamics Tel: +44 (0)20 7831 3113
Charles Palmer
Haya Chelhot
Hazel Stevenson
Notes to editors:
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows
companies to dramatically improve the business value of their enterprise
applications. Micro Focus Enterprise Application Modernization and Management
software enables customers' business applications to respond rapidly to market
changes and embrace modern architectures with reduced cost and risk. For
additional information please visit www.microfocus.com.
Related Shares:
MCRO.L